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Compare the Best Small Business Bank Accounts

Finding the right bank account for a small business can make a real difference.

• We're here to help you save money

• We support you by negotiating the best deals

• We help you compare with ease

For a startup, many banks offer an introductory free banking period, meaning you won't face monthly charges for using the account. However, other fees may apply.

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How to Choose the Best Bank Account for Small Businesses

Step One: Understand Your Requirements

How you do business will affect the type of account you need. How many transactions will you have each month? Do you need to pay in cash? Do you need a local branch?

Step Two: Check Eligibility

Most providers have a range of business accounts tailored to different types of small businesses. Check the eligibility of each account to make sure it suits your needs.

Step Three: Compare the Latest Offers

There are numerous offers and deals to attract new customers, which can be compared using our handy tool above. Always consider the ongoing costs after the free banking period ends.

What's Important When Choosing a Business Bank Account for Small Business Use?

• Additional fees for paying with cash

• Is your branch local enough for you to access easily?

• Many banks offer support to startups, including mentoring or software support

• All fees must be reviewed for relevance to your specific business activity

• Don't just stay with your current bank out of convenience unless it aligns with your needs

If you're unsure which account is right for your business, speak to other small business owners about their experiences with local branches. And once your account is open, review it annually. The 7-day switch guarantee covers all business accounts.

Small Business Banking and the 7-Day Switch Guarantee

Statistically, you're more likely to divorce your partner than switch your business bank account (according to BBC research) - but you don’t need to worry. Every small business banking provider that’s part of the 7-day switch scheme will handle your switch securely and efficiently.

Key tips to consider before you switch to a new small business bank account:

• Don’t just focus on the free period - evaluate post-free-period costs

• Know all the fees that might impact your business

• Switching is quick and secure (within 7 days)

• Make sure customers and clients know your new account details

• Ask peers about their experiences with online banking tools and apps - they vary a lot in quality and ease of use

Trouble Opening a Small Business Bank Account?

If you're having difficulty setting up a new business bank account for your small business or switching from your current provider, options are still available. Some providers offer:

• No credit checks

• Debit cards

• Online banking

• Post office deposit options

• Improved credit ratings over time

• Quick and branch-free setup

Monthly or annual fee structures vary, but some of these accounts can be cheaper than traditional small business bank accounts.

Bad Credit Bank Accounts

If you are having trouble setting up a business bank account or switching from your current one, then there are still options available where you can avoid credit checks.

What they offer:

• Debit cards

• Online banking

• The ability to pay into post offices or other establishments

• Potential improvement on your credit rating

• Quick setup and going to the branch is not required

Fees on the account can be paid monthly or annually. The account is simple and easy to use and it can also be cheaper than a standard business bank account.

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A Guide to Small Business Banking

Every small business starts with a big idea. But success depends on solid foundations, and one of the most critical is small business banking. From choosing a name and location to managing insurance and opening the right account, these early decisions matter.

Whether you're a startup, SME, freelancer or sole trader, finding the best bank account for small business success is key.

What Small Business Bank Accounts Are Available?

Finding a bank account with features that suit your needs is essential. Start by deciding how you want to manage your banking:

• In-branch

• Online

• By telephone

Some banks offer all three; others specialise in one or two.

Business Banking with High Street Banks

Many traditional banks still offer in-branch services, essential for businesses that handle cash. Consider:

• Opening hours

• Location and accessibility

• Counter services

• Additional support, like small business advice

Best Online Bank Accounts for Small Businesses

Online banking is now essential for many. Challenger banks and high-street banks offer online services, but not all are equal. Some features to look for:

• 24/7 account access

• Mobile app compatibility

• Online invoicing

• Integration with accounting tools

• Secure post office deposits if needed

• Telephone Banking for Small Business

Telephone banking remains popular with some business owners. Most providers offer it, and it’s beneficial if your business needs flexible account access outside of traditional hours.

Benefits of a Business Bank Account for Small Businesses

Why Separate Your Business and Personal Finances?

If you're a limited company, it's a legal requirement. If you're a sole trader, it's still recommended. A dedicated business bank account:

• Simplifies bookkeeping

• Helps with tax returns

• Enhances professional image

• Meets bank terms and conditions

• Avoids account closure due to business use of personal accounts

Small Business Banking Makes You Look More Professional

A business account with your company’s name adds credibility with clients and partners, reinforcing your legitimacy.

Should You Get a Business Savings Account Too?

Yes. A business savings account can help:

• Build a cash cushion

• Save for purchases or expansion

• Earn interest on surplus funds

What’s the Best Business Bank Account for Small Business Use?

The best bank account for small business success is one that aligns with your needs. Consider:

• Monthly account fees - some are waived for an introductory period

• Transaction fees, like cash deposits, cheque handling and online payments

• Account features like online banking, accounting integrations or business support

If your business handles many physical payments, a high-street bank may be ideal. If you prefer online access and tech integrations, a digital provider might be best.

Always compare your options based on what you value most: low fees, online tools, service quality, or branch access.

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Can You Open a Free Business Bank Account?

Yes. Many small business bank accounts start with a fee-free period. But it’s important with any free business bank account to check how long this lasts, and also evaluate:

• Post-introductory costs

• Account features

• Transaction limits

• Online vs in-branch support

Small Business Bank Account Comparison Tool

We know it's tough to find the right account. That’s why we’ve created a user-friendly comparison tool to help you evaluate:

• Monthly fees

• Free period duration

• Key features, like accounting software integration

• Eligibility criteria

Our partners offer some of the best bank accounts for small businesses in the UK, and our comparison tool makes it easy to find your ideal match.

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How to Open a Business Bank Account for a Small Business

Opening a small business account is simple. You’ll usually need:

• ID for all directors

• National Insurance number

• Proof of address

• Business registration details

• Estimated turnover

• Contact information

Challenger banks let you apply online or via a mobile app. Traditional banks may require an in-branch appointment.

Why Small Businesses in the UK Must Compare Bank Account Deals

In today’s competitive market, small business banking is about more than just transactions - it’s a strategic tool.

Benefits of Regularly Comparing Accounts:

• Cost savings from updated deals

• Enhanced features through new tech and app functionality

• Better alignment as your business scales

• More flexibility, fewer hidden fees

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Small Business Bank Account FAQs

What’s the best bank account for a small business in the UK?

The best bank account for a small business depends on your unique needs, such as transaction volume, cash handling and integration with accounting tools. Regularly comparing small business banking options ensures you find the most cost-effective and feature-rich solution for your stage of growth.

Can I use a personal bank account for my small business?

It’s strongly recommended that you don’t use a personal bank account for business transactions. A dedicated business bank account keeps your finances separate, supports accurate tax reporting, and presents a more professional image to clients and suppliers.

Are online business bank accounts safe for small businesses?

Yes. Most digital-only banks use robust encryption, two-factor authentication, and fraud detection tools. When choosing a business bank account for a small business, be sure to review the security features on offer to ensure peace of mind.

How do I switch to a new business bank account?

Many UK banks offer a Current Account Switch Service, which transfers your balance, payments, and direct debits within seven working days. Before switching, compare small business bank accounts to ensure the new one aligns with your needs and goals.

What features should I look for in a small business bank account?

Prioritise low or transparent fees, integration with financial tools, mobile accessibility, real-time analytics, and customer support. As your business grows, the best bank account will scale with you, offering flexibility and features that support long-term success.

What is the main difference between a business account and a personal account?

A personal account is designed for your private financial needs. A business account, on the other hand, is specifically for business transactions. This separation is crucial for managing your business finances, calculating taxes, and maintaining a professional image.

While sole traders aren’t legally required to have a business account, using one for small business banking does make financial management simpler and more transparent.

Do I need a high street bank for my small business?

No, you don’t. While high street banks offer traditional services like in-branch support, a growing number of digital and app-based banks provide an excellent service for small businesses. These digital providers often have lower fees and more advanced online tools.

The right choice depends on your preference for banking: whether you prefer in-person service or are comfortable managing your finances online.